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Definition of 'Liquidator'

A liquidator is a person or company appointed by a court to wind up a company that is insolvent or in financial difficulty. The liquidator's role is to collect the company's assets, pay its debts, and distribute any remaining assets to the company's shareholders.

The liquidator has a number of powers, including the power to sell the company's assets, enter into contracts, and bring legal proceedings. The liquidator must also prepare a report for the court on the company's affairs and the conduct of its directors.

The liquidator is usually appointed by the court after a creditor or shareholder of the company has applied for the company to be wound up. However, the company's directors may also apply for the company to be wound up voluntarily.

The liquidator's fees are paid out of the company's assets. If there are insufficient assets to pay the liquidator's fees, the liquidator may apply to the court for an order that the shareholders pay the fees.

The liquidator's role is an important one in ensuring that the affairs of insolvent companies are properly wound up and that creditors are paid as much as possible.

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